Homeownership is becoming increasingly difficult to achieve as interest rates and sale prices continue to rise across the nation. These hardships are pushing many residents in Houston toward renting single-family homes, creating a rise in demand.
The overview
Home prices in Houston have increased since 2020, with the median home price shooting up from $252,500 in 2020 to $337,000 in 2025, a 33% increase, according to data from the Houston Association of Realtors.
HAR Chair-Elect Kat Robinson said the cost factor has made it difficult for many to afford a home and is resulting in more residents renting single-family properties instead.
“It gives you the experience of cutting the lawn, and how you’re incorporating taking care of that extra square footage in your day-to-day,” she said. “It’s good practice.”
In 2023, the average number of single-family rentals that were leased per month in Houston was 3,592. In 2024, it rose to 3,710, and up again in 2025 to 3,945, according to HAR.
“With economic uncertainty shaping consumer decisions, some are choosing to rent in the near term,” said HAR Chair Theresa Hill. “That dynamic is driving strong demand and record leasing levels.”
From 2023 to 2025, there has been a 10% increase in leased listings in Houston, while single-family home sales have slowed to see only a 5% increase.
By the numbers
The cost of renting has also proven to be more stable over the last several years when compared to the rising price of homeownership.
From 2023 to 2025, the average monthly rent in Houston only increased by roughly 4%, rising from $2,236 per month in 2023 to $2,319 in 2025, according to data from HAR.
Another point of view
Robinson said developers have also started to adhere to the rising demand for rental homes as more developers are creating communities that have single-family rentals built into the neighborhood.
According to data from the U.S. Department of Housing and Urban Development, roughly 6,350 build-to-rent single-family homes have been permitted in Houston since 2020.
